Hostess, union heading to mediation to try to save company

IRVING, Tx. -- Twinkies-maker Hostess Brands agreed in court Monday afternoon to enter into mediation with its lenders and striking union leaders to try to prevent liquidaiton of the long-time maker of the snacks and other major brands like Wonder Bread.

This means theIrving, Texas-based company won't go out of business just yet. The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week.

The bankruptcy judge hearing the case says that the parties haven't gone through the critical step of mediation and asked the lawyer for the bakery's union to ask his client, who wasn't present, if he would agree to participate.

Hostess and the union agreed to mediation talks, which are expected to begin the process on Tuesday.

The case is being heard by the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y.